Barron’s – Major League Baseball is now demanding the right to question Highbridge Principal Strategies, which has floated a $150 million loan to Dodgers owner Frank McCourt to keep the team afloat through bankruptcy proceedings. The hedgie is owned by J.P. Morgan. MLB is contending that the hedge fund has collected a ‘surreptitious’ $5.25 million fee that the lender and the team’s owner have intentionally withheld from the court.
“It is our understanding that the undisclosed fee was provided for in a side fee letter between Highbridge and the [team] that has not been filed with the Court or made part of the record in any fashion,” MLB attorneys said in a memo filed Friday with the U.S. Bankruptcy Court in Wilmington, Del., and reported by Dow Jones Daily Bankruptcy Review today.
